M:;S. PEIRCE LESLIE & CO., LTD., KOZHIKODE versus THEIR WORKMEN

M:;S. PEIRCE LESLIE & CO., LTD., KOZHIKODE versus THEIR WORKMEN

Since the claim for additional bonus was made only by a small percentage of workmen and all workmen contributed to the surplus, the entire surplus could not be distributed to these few claimants. No unusual risk or small capital basis justified alteration of the Full Bench Formula or higher returns allowed. No additional rehabilitation allowance was justified beyond what Tribunal permitted.

Parties
Appellant: M/s. Peirce Leslie & Co., Ltd., Kozhikode; Respondent: Their Workmen
Jurisdiction
India
Judgment Date
09 March 1960
Procedural Posture
Civil Appeal / Appeal From Industrial Tribunal Award
Outcome
Appeal partly allowed
Legal Topics
Bonus, Industrial Dispute, Full Bench Formula, Rehabilitation Allowance, Distribution of Surplus Profits
Labour Law Bonus Industrial Dispute Full Bench Formula Rehabilitation Allowance Distribution of Surplus Profits

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Parties

M/s. Peirce Leslie & Co., Ltd., Kozhikode

Appellant

Their Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal From Industrial Tribunal Award

Legal Issues

  1. 1 Whether higher return than usual on paid up capital and reserves used as working capital should be allowed due to unusual risk and small employed capital
  2. 2 Whether higher rehabilitation allowance than permitted by the Tribunal should be granted
  3. 3 Whether entire available surplus can be distributed as bonus to a small percentage of claimants among workmen

Ratio Decidendi

Since the claim for additional bonus was made only by a small percentage of workmen and all workmen contributed to the surplus, the entire surplus could not be distributed to these few claimants. No unusual risk or small capital basis justified alteration of the Full Bench Formula or higher returns allowed. No additional rehabilitation allowance was justified beyond what Tribunal permitted.

Court Disposition

Appeal partly allowed

Orders

  • Bonus equivalent to 3 months' basic wages awarded in addition to amount already paid voluntarily by the company
  • Industrial Tribunal award modified accordingly